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3 1262 08486 7935 Registry No. 299-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC 

MANUFACTURING INDUSTRY 

AS APPROVED ON JA UARY 16, 1934 

WE DO OUR PART 

UNITED ST ATES 

GOVERNMENT PRINT! G OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

Cleveland, Ohio : Ghn.mber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indiana.polis, Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, Minn.: 213 Federal Building. 

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New York, N.Y.: 734 Customhouse. 

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Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa. : Chamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 214 

CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING INDUSTRY 

As Approved on January 16, 1934 

ORDER 

APPROVING CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in :full 

compliance with the provisions o:£ Title I o:£ the National Industrial 

Recovery Act, approved June 16, 1933, :for approval o:£ a Code of 

Fair Competition :for the Slit Fabric Manu:facturing Industry, and 

hearings having been duly held thereon and the annexed report on 

said Code, containing findings with respect thereto, having been 

made and directed to the President: 

NOW, THEREFORE, on behal:£ o:£ the President o:£ the United 

States, I, Hugh S. Johnson, Administrator :for Industrial Recovery 

pursuant to authority vested in me by Executive Orders o:£ the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by re:ference said annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and purposes o:£ said Title o:£ said Act; and do hereby order that said Code 

o:£ Fair Competition be and it is hereby approved. 

I-IuoH S. J OHNsoN, 

.Administrator for Industrial Recovery. 

Approval recommended: 

A. D. ,;v HITESIDE, 

Division .Ad1ninistrator. 

W ASHINGTON, D.C., J anuMy 16, 1934. 

32790°-313-74-34 (245) 
The PRESIDENT, 

The White House . 

. Srn: The public hearing on the Code of Fair Competition for 

the Slit Fabric Manufacturing Industry, as proposed by the National Association of Slit Fabric Manufacturers, Inc., was conducted in Room 2062, Department of Commerce Building, Washington, D.C., on October 30, 1933. Every person who requested an 

appearance was fairly heard in accordance with regulations of the 

National Recovery Administration. The Code has the approval 

of the Labor, Industrial and Consumers' Advisory Boards of the 

National Recovery Administration and of the Legal Division. The 

Chairman of the Code Committee of the submitting Association upon 

authorization of the Committee has also given his a.pproval to the 

final draft of the Code on behalf of the Industry. 

DESCRIPTION OF THE INDUSTRY 

The industry as defined in the Code includes the manufacture and 

sale by the manufacturer or jobber of slit fabrics for bindings, 

pipings, trouser curtains, waist-band canvas and trimmings for use 

of and sale to the cutting-up manufacturing trades. The Slit Fabric 

Manufacturing Industry is a "supply" industry. Its customers 

are the cutting-up manufacturing trades composed mainly of manufacturers of wearing apparel. The definition limits the application 

of the Code to the Slit Fabric Manufacturers whose product is used 

by and sold to the cutting-up manufacturing trades. This excludes 

from the provisions of this Code those few garment manufacturing 

firms which produce slit fabrics not for sale to others but for cons11mption by themselves as part of their finished garment. It also 

excludes those slit fabric manufacturers known as a box trade whose 

problems are different and whose product is destined solely for sale 

"over the counter" at retail. Likewise excluded by this limitation 

in the definition are manufacturers of slit fabrics used by and sold 

to the shoe, electrical equipment and rubber tire industries. 

The submitting Association has offered the following general statistics which are descriptive of the industry. 

Total Firms in tbe Industry__________________________ 100 

Aggregate Annu.11 Sales, 1932 ________________________ $8, 000, 000 

Aggregate Invested Capital, 1933 _____________________ $3, 700, 000 

Employees__________________________________________ 1,700 

RESUME OF THE CODE 

ARTICLE I states the purpose of the Code. 

ARTICLE II sets forth certain definitions. 

ARTICLE III contains the maximum hour provisions of the Code, 

prohibits the employment of workers in homes and limits the operation of each plant in the industry to one shift per day. 

(246) 
247 

ARTICLE IV establishes the m1mmum wage for all employees 

employed in the industry. 

ARTICLE V contains the general labor provisions including a provision prohibiting child labor as well as the mandatory labor provisions 

required by the Act. 

ARTICLE VI sets up a Code Authority and defines its powers and 

duties. 

ARTICLE VII provides for the elimination of certain unfair trade 

practices . .. ARTICLE VIII provides the methods of modifying the Code. 

ARTICLE IX contains the mandatory provisions referring to monopolies and discrimination against smal11 enterprises. 

ARTICLE X states the effective date of the Code. 

LABOR PROYISIONS OF THE CODE-POSSIBLE REEMPLOYl\IENT 

Being primarily a service industry and using as it does generally 

cotton fabrics, the industry employs workers with no high degree of 

skill and is close to the cotton textile industry in its general position. 

It seems reasonable therefore that its wage and hour provisions 

should be largely determined by those applying in the cotton textile 

and other simil1ar industries. 

It is noteworthy that the number of employees is reported to be 

about the same in 1933 as in 1928 and 1930. From June to October 

1933 there was an increase of 110 employees. This represents in part 

the effect of the application of the President's Reemployment Agreement. It is estimated by the Industry that from 30% to 40% of all 

employees recei" ed wage increases as a result of the application of 

the President's Reemployment Agreement and that most of these 

were female employees. The minimum wages paid in the industry 

prior to the President's Reemployment Program are stated to have 

been $8, $9, and $10 per week. Proponents of the Code assert that 

the present pay roll represents an increase :from 50% to 200% over 

those paid before the adoption of the President's Reemployment 

Agreement. 

FINDIKGS 

The Deputy Administrator in his final report to me on said Co.de 

having found as herein set forth and on the basis of all the proceedings in this matter ; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof and will provide 

for the general welfare by promoting the organization of industry 

for the purpose of cooperative action among the trade groups, by 

inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervisions, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily 
248 

required). by increasing the consumption of industrial and agricultural procluct through increasing purchasing power, by reducing and 

relieving unemployment, by improving standards of labor, and by 

otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant group 

is an industrial group truly representative of the aforesaid Industry; 

and that said group imposes no inequitable restrictions on admission 

to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not elin1inate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For these reasons, this Code has been approved. 

Respectfully, 

J il.TUARY 16, 1934. 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

SLIT FABRIC MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

To effectuate the policies o:f Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code o:f 

Fair Competition for the Slit Fabric Manufactu1·ing Industry and 

shall be the standard of fair competition :for this industry and shall 

be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

1. The term " industry " as used herein includes the manufacture 

and sale by the manufacturer or jobber of slit fabrics for bindings, 

pipings, trouser curtains, waistband canvass and trimmings for use 

of and sale to the cutting-up manufacturing trades. The articles 

enumerated herein when made in clothing :factories and used in connection with the garments manufactured in such factories are 

exempted from the provisions o:f this Code. 

2. The term "employee" as used herein includes anyone engaged 

in the industry in any capacity receiving compensation for his 

services, irrespective of the nature or method of payment of such 

compensation. 

3. The term : employer" as used herein includes anyone by whom 

any such employee is compensated or employed. 

4. The term 'member of the industry" includes anyone engaged 

in the industry as above defined, either as an employer or on his 

own behalf. 

5. The terms "Act" and "Administrator" as used herein shall 

mean, respectively, Title I of the National Industrial Recovery Act 

and the Administrator for Industrial Recovery. 

6. The term "Southern Section of the United States" as used 

herein shall include the States of Alabama, Florida, Georgia, Kentucky, Louisiana, :Mississippi, North Carolina, South Carolina, 

Tennessee, Texas, and Virginia. 

7. The term "Northern Section of the United States" as used 

herein shall include all the States in the United States not specifically 

included within the Southern Section of the United States, and 

the District of Columbia. 

8. The term "jobber" as used herein includes all those for whom 

and/or under whose directions or orders slit fabrics for bindings, 

piping. trouser curtains, waist-band canvas and trimmings are 

manufactured in whole or in part by contractors and/ or other manufacturers, and who act a wholesale distributor thereof. 

9. The term 'manufacturer ' as u ed herein includes all those who 

manufacture slit fabrics as defined in Section 1 of Article IL 

(249) 
250 

ARTICLE III-HoURs OF LABOR 

1. Except as hereinafter provided no employee shall be permitted 

to work in excess of forty ( 40) hours in any one week or eight ( 8) 

hours in any twenty-four (24) hour period. 

2. The provisions of this Article shall not apply to those persons 

engaged in an executive, managerial, or supervisory capacity earning $35.00 per week or more, and who are not engaged in any way in 

productive labor; nor to outside salesmen. 

3. Chauffeurs, shipping clerks, and outside errand boys shall not be 

permitted to work in excess of 44 hours in any one week. 

4. The maximmn number of hours of overtime which any employee 

may work in any six (6) months' period shall be twenty-five (25) 

hours, and in no event shall any employee be permitted to work more 

than one (1) hour overtime per day, or more than five (5) hours 

overtime per week. All overtime shall be paid for at not less than 

the rate of time and one third. 

5. No overtime in addition to that herein provided for shall be 

permitted except upon the recommendation of the Code Authority 

and the approval of the Administrator and under such conditions 

and upon such terms as the Administrator shall prescribe. 

6. No employer shall knowingly permit any employee to work 

for any time which when totaled with that already performed with 

another employer, or employers, in this industry exceeds the 

maximum permitted herein. 

7. No home work shall be permitted by members of the industry. 

8. Not more than one (1) shift of employees shall be allowed 

in any one (1) day. The Administrator, upon due showing and 

after such notice and hearing as he may prescribe, may grant such 

exceptions to this provision as he may deem necessary. 

ARTICLE IV-RATES OF p AY 

1. No employee shall be paid at less than the rate of thirteen 

(13) dollars per week when employed in the Northern Section of 

the United States, nor less than at the rate of twelve (12) dollars 

per week when employed in the Southern Section of the United 

States, except as hereinafter provided. 

2. Apprentices may be paid not less than at the rate of eighty 

percent (80%) of the minimum wage provided for herein for a 

period not to exceed eight (8) weeks, provided that at no time shall 

the total number of apprentices employed by any one employer exceed 

eight percent (8%) of the total number of employees. However, any 

employer shall be entitled to employ at least one apprentice. 

3. This Article establishes a minimum rate of pay, regardless of 

whether an employee is compensated on a time-rate, piecework, or 

other basis. 

4. Wages of those receiving more than the minimum shall be 

equitably adjusted so as to preserve the differentials existing on 

July 1, 1933. All adjustments of wage rates made in accordance 

with this provision shall be reporfa~d to the Code Authority within 

thirty (30) days of the effective date of this Code. 
251 

The Code Authority shall have the power to investigate and adjust 

complaints arising under this provision; adjustments by the Code 

Authority shall be subject to review by the Administrator. 

5. Female employees performing substantially the same work as 

male employees shall receive the same rate of pay as male employees. 

6. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed at a wage below the 

minimum established by this Code under the folfowing conditions: 

(a) That they shall be paid proportionately no less than the other 

employees in the same :factory receive for similar work, but in no 

case shall their compensation amount to less than seventy percent 

(70%) o:f the amount required by the minimum wage provisions of 

this Code. 

(b) That the employer shall at once prepare and transmit to the 

Uode Authority a list of such excepted persons stating name, class 

of occupation, wage rate, length o:f service, and reason :for exception. 

This 11st shall be revised up-to-date once each month and transmitted 

to the Code Authority. 

( c) The proportion of excepted persons to total employees at any 

time shall not exceed the proportion of such employees on the pay 

roll during the week of July 15, 1933. 

(d) The Code Authority shall have the right to investigate and 

disallow any such claims for exception subJect to review by the 

Administrator upon appeal by any employer or employee. 

( e) The Code Authority shall report to the Administrator within 

three ( 3) months and from time to time thereafter as to the effect 

of the operation of this provision, both generally and in cases of 

individual hardship. 

ARTICLE V-GENERAL LABOR PROVISIONS 

1. No pei'son under 16 years o:f age shall be employed in the industry, nor anyone under 18 years of age at operations or occupations 

hazardous in nature or detrimental to health. The Code Authority 

shall submit to the Administrator before February 1, 1934, a list of 

such occupations. In any State an employer shall be deemed to have 

complied with this provision if he shall have on file a certificate or 

permit duly issued by the authority in such State empowered to 

issue employment or age certificates or permits, showing that the 

employee is of the required age. 

2. Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion o:f employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

3. No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to refrain from joining, organizing or assisting a labor organization of 

his own choosing ; and 

4. Employers shall comply with the maximum hours of labor, 

minimum rates of pay, and other conditions o:f employment, approved or prescribed by the President. 
252 

5. Within each State this Code shall not supersede any laws of 

such State imposino- more stringent requirem.ents on employers regulating the age of employees, wages, hours of work or health, fire, or 

general working conditions than under this Code. 

6. Employers shall not reclassify employees or duties of occupations performed by employees or engage in any subterfuge so as to 

defeat the purposes of the Act. 

7. Each employer shall post in conspicuous places accessible to 

employees copies of Articles III, IV, and V of this Code. 

ARTICLE VI-ADMINISTRATION 

A Code Authority is hereby constituted to cooperate with the 

Administrator in the administration of this Code. 

1. Organization and constitution of Code Authority. 

(a) The Code Authority shall consist of not less than five ( 5) 

nor more than eight (8) members, five (5) of whom shall be selected 

by the Board of Directors of the National Association of Slit Fabric 

Manufacturers, Inc., and not more than three ( 3) of w horn, without 

vote and without expense to the Industry, may be appointed by the 

Administrator to represent such groups or interests or such governmental agencies as he may designate. 

(b) Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall: 

(1) Impose no inequitable restrictions on membership, and (2) 

Submit to the Administrator true copies of its articles of association, 

by-laws, regulations, and any amendments when made thereto, together with such other information as to membership, organization, 

and activities as the Administrator may deem necessary to effectuate 

the purposes of the Act. 

( c) In order that the Code Authority shall at all t~es be truly 

representative of the industry and in other respects comply with the 

provisions of the Act, the Administrator may provide such hearings 

as he may deem proper; and tnereafter if be shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

( d) The Administrator shall entertain complaints and provide 

such hearings as he may deem proper for those claiming the right 

to be represented on the Code Authority, and shall have the right 

from time to time to change the method of selection and the organization selecting the members of the Code Authority, in order that it 

shall be truly representative of the industry. 

( e) If it shall be represented to the Administrator by any interested party, or he shall determine upon his own motion, that any 

action of the Code Authority, or of any subdivision Code Authority, 

is unfair to any private interest or contrary to the public interest, the 

Administrator may require that such action be suspended for a period 

of not to exceed thirty (30) days to afford an opportunity for Investigation of the merits of such ccmplaint and further consideration 

by the Code Authority pending final action, to be taken only upon 

appro,al by the Administrator. 
253 

2. The Code Authority shall have the following duties and powers 

to the extent permitted by the Act and subject to the right of the 

Administrator or his Deputy on review to disapprove any action 

taken by the Code Authority. 

(a) To elect officers and to assign to them such duties as it may 

consider advisable, and to provide rules for its procedure, and its 

continuance as the administrative agency of this Code, in accordance 

with the terms of the Act and the principles herein set forth. 

(b) To receive, investigate, and adjust complaints of violations of 

this Code, and based upon such investigations and after such hearings 

as it may deem proper, to make recommendations in respect thereto 

to the proper authorities for the prosecution of such violations. 

( c) To obtain from time to time from employers in the industry 

reports in respect to wages, hours of labor, conditions of employment, 

number of employees, and other matters pertinent to the purposes of 

this Code, as the Code Authority may prescribe, and to submit periodical reports to the Administrator in such form and at such times as 

he may require, in order that the President may be kept informed 

with respect to the observance thereof. 

No individual reports shall be disclosed to any other member of 

the industry or any other party except to such governmental agencies 

as may be directed by the Administrator. · 

( d) In addition to the information required to be submitted to 

the Code Authority, all members of the industry shall furnish such 

adequate information as the Administrator may deem necessary 

for the purposes recited in Section 3 (a) of the Act to such Federal 

and State agencies a the Administrator may designate. Nothing 

ii;i this Code shall relieve any one of any existing obligation to 

furnish reports to government agencies. 

( e) To use such trade associat10ns and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, and to pay such agents the cost thereof; provided, that such 

agency shall at all times be subject to and comply with the provisions of this Code; and provided further, that nothing herein shall 

relieve the Code Authority of any of its duties and responsibilities 

hereunder. 

(f) To coordinate the administration of this Code with such 

other codes, if any, as may be related to the Slit Fabric Manufacturing Industry, or any subdivision thereof, with a view to promoting 

joint and harmonious action upon matters of common interest. 

(g) To make surveys, to compile reports, to collect statistics 

and trade information, to investigate unfair trade practices, to make 

recommendations for fair trade practices, and otherwise assist th& 

Administrator in effecting the purposes of this Code and the Act. 

(h) To provide ways and means for financing the operation of 

said Code Authority and to determine an equitable method of apportioning in the industry the cost of administering this Code. 

Money raised in any manner shall not exceed in amount such reasonable cost. 

(i) To cooperate with the Administrator in regulating the use 

of the N.R.A. insignia solely by those employers who have assented 

to this Code. 
25-1 

(j) Subject to the approval of the Admini~trator, the Code ~~uthority shall have the power to adopt a uniform cost-accounting 

system for the industry which when so adopted shall be the standard 

cost-accounting system for the Industry. . . . . 3. :Members of the industry shall be entitled to participate m and 

share the benefits of the activities of the Code Authority and to 

participate in the selection of. the members ~hereof by assenti1;1g_ to 

and complying with the requirements of ~his Co~e. and _sustaining 

their reasonable share of the expenses of its administrat10n. Such 

reasonable share of the expenses of administration shall be determined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/or such other factors 

as may be deemed equitable. 

4. The Code Authority shall study provisions relating to trade 

practices, investigate the observance thereof, and make such recommendations thereon to the Administrator as it shall deem advisable. 

Upon the approval of the Administrator and after such hearing as 

he may prescribe, such recommendations, or any part of them, as 

may be so approved, shall become a part of this Code and shall have 

full force and effect as provisions hereof. 

ARTICLE VII-TRADE PRA.CTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited: 

1. False l,f {lfl'king or Branding.-The false marking, branding, or 

invoicing of any product of the industry which has the tendency 

to mislead or deceive customers or prospective customers, wheth~r 

as to its grade, quality, quantity, substance, character, nature, origin, 

size, finish, its preparation, or otherwise. 

2. llf isrepresentation or False or llfislcading Advertising.-The 

making or causing or knowingly permitting to be made or published 

any false, materially inaccurate, or deceptive statement by way of 

advertisement, or otherwise, whether concerning the grade, quality, 

quantity, substance, character, nature, origin, size, finish, or preparation of any J?roduct of the industry, or the credit terms, values, policies, or services of any member of the industry, or otherwise, having 

the tendency or capacity to mislead or deceive customers or prospective customers. 

3. Commercial Bribery.-No member of the industry shall give, 

permit to be gfren, or directly offer to give anything of value for 

the purpose of influencing or rewarding the action of any employee, 

agent, or representative of another in relation to the busmess of the 

employer of such employee, the principal of such agent, or the represented party without the knowledge of such employer, principal 

or party. Commercial bribery provisions shall not be construed to 

prohibit free and general distribution of articles commonly used for 

advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. 

4. Interference ivith Contractual Relations.-Maliciously inducing 

or attempting to induce the breach of an existing oral or written 
255 

contract between a competitor and his customer or source of supply, 

or interfering with or obstructing the performance of any such contractual duties or services. 

5. Secret R ebates.-The secret payment or allowance of rebates, 

refunds commissions, credits, or unearned discounts, whether in the 

form of money or otherwise, or the secret extension to certain purchasers of special services or privileges not extended to all purchasers 

on like terms and conditions. 

6. Defam,ation.- The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, 

questionable credit standing, or by other false representations, or 

by the false disp~ragement of the grade or quality of their goods. 

7. Threats of Litigation.-The publishing or circularizing o:f 

threats or suits for infringement of patents or trade marks or of any 

other legal proceedings not in good faith, with the tendency or effect 

of harassing competitors or intimidating their customers. 

8. Espionage of Oompetitors.-Securing confidential information 

concerning the business of a competitor by a false or misleading 

statement or representation, by a false impersonation of one in 

authority, by bribery, or by any other unfair method. 

9. Consigned Merchandise.-No member of the industry shall ship 

goods on consignment or memorandum except under circumstances 

to be defined by the Code Authority where peculiar circumstances o:f 

the industry require the practice. 

10. Selling B elow Oost.-No member of the industry shall sell any 

article at price below his individual cost except as hereinafter provided. Any member of the industry may meet the price of any other 

member of the industry whose cost under this provision is lower and 

may sell dropped lines or distress merchandise below such cost if 

approval of such sale is first obtained from the Code Authority. 

For this purpose, costs shall be determined by the Uniform Cost 

Accounting System provided for in the foregoing Article VI, Section 2, Subsection (j). 

ARTICLE VIII-MoDIFICA TIO NS 

1. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of subsection (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 

approval, license, rule, or regulation issued under Title I of said Act 

and specifically, but without limitation, to the right of the President 

to cancel or modify his approval of this Code or any conditions 

imposed by him upon his approval thereof. 

2. This Code, except as to provisions required by the Act, may be 

modified on the basis of experience or changes in circumstances, such 

modification to be based upon application to the Administrator and 

such notice and hearino- a he hall pecify, and to become effective 

upon approval of the Administrator. 
256 

ARTICLE IX-MONOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. · 

ARTICLE X-EFFECTIVE DA TE 

This Code shall become effective on the second :Monday after its 

approval by the President. 

Approved Code No. 214. 

Registry No. 299-04. 

0